The Gory Details on China Yuchai International's Double Fumble

Seth Jayson, The Motley Fool
Updated

China Yuchai International (NYS: CYD) reported earnings on Aug. 10. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), China Yuchai International missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.


Gross margins improved, operating margins dropped, net margins contracted.

Revenue details
 China Yuchai International booked revenue of $538.6 million. The one analyst polled by S&P Capital IQ predicted a top line of $554.8 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $621.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.28. The one earnings estimate compiled by S&P Capital IQ forecast $0.52 per share. GAAP EPS of $0.28 for Q2 were 56% lower than the prior-year quarter's $0.64 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 19.7%, 50 basis points better than the prior-year quarter. Operating margin was 6.1%, 110 basis points worse than the prior-year quarter. Net margin was 2.0%, 190 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $557.4 million. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $2.95.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 356 members out of 387 rating the stock outperform, and 31 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give China Yuchai International a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on China Yuchai International is hold, with an average price target of $15.50.

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The article The Gory Details on China Yuchai International's Double Fumble originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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